Skip to comments.America’s Last Chance
Posted on 02/01/2013 5:39:29 AM PST by SJackson
Lets expose presidential prevarication. Earlier this year, President Barack Obama warned that Social Security checks will be delayed if Congress fails to increase the governments borrowing authority by raising the debt ceiling. However, theres an issue with this warning. According to the 2012 Social Security trustees report, assets in Social Securitys trust funds totaled $2.7 trillion, and Social Security expenditures totaled $773 billion. Therefore, regardless of what Congress does about the debt limit, Social Security recipients are guaranteed their checks. Just take the money from the $2.7 trillion assets held in trust.
Which is the lie, Social Security checks must be delayed if the debt ceiling is not raised or theres $2.7 trillion in the Social Security trust funds? The fact of the matter is that they are both lies. The Social Security trust funds contain nothing more than IOUs, bonds that have absolutely no market value. In other words, they are worthless bookkeeping entries. Social Security is a pay-as-you-go system, meaning that the taxes paid by todays workers are immediately sent out as payment to todays retirees. Social Security is just another federal program funded out of general revenues.
If the congressional Republicans had one ounce of brains, they could easily thwart the president and his leftist allies attempt to frighten older Americans about not receiving their Social Security checks and thwart their attempt to frighten other Americans by saying we are not a deadbeat nation and suggesting the possibility of default if the debt ceiling is not raised. In 2012, monthly federal tax revenue was about $200 billion. Monthly Social Security expenditures were about $65 billion per month, and the monthly interest payment on our $16 trillion national debt was about $30 billion. The House could simply enact a bill prioritizing how federal tax revenues will be spent. It could mandate that Social Security recipients and interest payments on the national debt be the first priorities and then send the measure to the Senate and the president for concurrence.
It might not be a matter of brains as to why the Republican House wouldnt enact such a measure; it likes spending just as the Democrats.
I believe our nation is rapidly approaching our last chance to do something about runaway government before we face the type of economic turmoil seen in Greece and other European nations. Tax revenue has remained constant for the past 50 years, averaging about 18 percent of gross domestic product. During that interval, federal spending has risen from less than 20 percent to more than 25 percent of GDP. What accounts for this growth in federal spending? The liberals like to blame national defense, but in 1962, national defense expenditures were 50 percent of the federal budget; today they are 19 percent. What accounts for most federal spending is the set of programs euphemistically called entitlements. In 1962, entitlement spending was 31 percent of the federal budget; today it is 62 percent. Medicare, Medicaid and Social Security alone take up 44 percent of the federal budget, and worse than that, its those expenditures that are the most rapidly growing spending areas.
Our federal debt and deficits are unsustainable and are driven by programs under which Congress takes the earnings of one American to give to another, or entitlements. How long can Congress take in $200 billion in revenue per month and spend $360 billion per month? That means roughly 40 cents of every federal dollar spent has to be borrowed. The undeniable fact of business is that a greater number of people are living off government welfare programs than are paying taxes. Thats whats driving Europes economic problems, and its whats driving ours. The true tragedy is that just to acknowledge that fact is political suicide, as presidential contender Mitt Romney found out. We cant blame politicians. Its the American people who will crucify a politician who even talks about cutting their favorite handout.
*trust fund* ping from walter williams...
I would like to extend that idea to income taxes, ok you get to steal my money but ONLY use it for programs X and Y and nothing else. It is a good idea.
Thanks, you may recall I made the same point a few times here as he does.
Dems swear the SS fund is secure, but they also claim we must increase the debt limit to pay SS.
So which is it?
If you recall I did the youtube cartoon on this issue.
I been waiting a long time for the GOP to take on a ‘winning issue’ so I can make another cartoon on it.
Gun control might be the one.
>>> I believe our nation is rapidly approaching our last chance to do something about runaway government before we face the type of economic turmoil seen in Greece and other European nations.
I am convinced that the 2012 elections only served to prove that this nation has flaunted it’s chances long ago.
The democrat no longer fears what is left of a moral majority.
They just fear the guns.
how bout a 'compare/contrast' toon...the vet in NY that caught 5 'felonies' for property in his trunk that was 'legal' 2 weeks ago, have him *trading places* with juan at Rikers as hes released to freedom now that his years of an 'illegal' situation has been legalized ???
go one better and give juan a union cop job [maybe even border patrol] and issue him a select fire weapon...the decorated combat vet could also be sent to hard labor picking mcquuuuuuuuuuuueeeeeeg lettuce in the fields...
That "last chance" disappeared from the rear view mirror years ago.
We are sliding down an icy hill and there is no amount of braking that will stop us. All that is left is perhaps to add a little steerage to pick our impact point from the available bad options, and then brace ourselves.
The current social unrest that the Democrats are brewing may be nothing more than them picking their spots, turning the riotous parasites they created on others.
If the Republicans had a solid ground game something like this would be a good start. Problem is they don’t. Obama doesn’t care and would love to have the debt default. He will just put a bunch of angry seniors in front of a camera, mobilize the unions, and have the Propaganda Ministry give 24/7 coverage of the US debt default and how millions of innocent people are losing everything. Doesn’t matter if it’s true or not, all that matters is advancing the blame those evil Republican message. People will buy it because Republicans have no ability to organize opposition. Instead they turn up their noses at conservatives who are more than ready to counter the lies.
All that is left is to make sure that YOUR family and YOUR community are less severely impacted by the inevitable crash that’s coming.
We’re getting the tax side under control here in Kansas, but the spending is still atrocious. Even our best Senators and Representatives are afraid to slow spending on stupid things like the giant “Arts Council”, which includes no one who actually produces art. Or local PBS stations, which no one watches.